Gas Prices are Falling

Gas prices are still going lower and lower with demand still low. Could we be in lower prices for the remainder of fall and winter? 

Dropping my kids off at school this week, I saw a sight I thought I’d never see again: a gallon of gas for under $3. 

The leaves are turning, the sweaters are coming out, and gas prices have dipped below $3 for the first time in more than a year. At least in our neck of the woods. 

The national average is still $3.716 as of 9/12, much lower than the $5.02 peak in June. 

What Does This Mean for You?

The most obvious change you should see is a reduction in your monthly fuel costs. Gas prices rising or falling by a few cents are usually much less impactful on individuals than the amount we collectively worry about them. But a more than $1 reduction in prices could noticeably help your budget. 

Prices of goods should begin to follow the gas trends. Consumer goods don’t mirror gas prices 1-to-1, but most consumer goods have to be shipped. So at the very least it now costs less to get goods to you. 

What Can We Expect of Future Gas Prices?

But even with prices dwindling, drivers are still driving less. This could partially explain the continued and rapid fall in prices. 

A survey by AAA found drivers are changing their driving habits to keep their gas consumption in line with their budget. In fact, more than 60 percent of US adults already made changes since the historic rise in gas prices began this spring. 

Those plans include driving less, combining errands, reducing shopping and dining out trips, putting off large purchases, postponing vacations, carpooling, using public transportation, and even switching to an EV or more fuel-efficient car.

Consumer demand for fuel has gone up as prices have gone back up, but it’s still hundreds of thousands of barrels a day lower than it was at this time in 2021. 

Another reason prices have fallen fast is the quiet start to the 2022 hurricane season. 

And with the fall typically carrying a lower fuel demand than the summer, experts predict sustained low prices.